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CIMA BA2 – Fundamentals of Management Accounting Question Tutorial Sample Questions:

1. FILL BLANK
The following data are available for a delivery company. The table shows the number of tonnes delivered (x) and the associated distribution cist (y) in recent periods.

Further analysis of this data has determined the following:
∑xy = 36,427 ∑x2 = 1,144
Using least squares regression analysis, calculate the variable cost per tonne delivered. Give your answer to the nearest cent.

2. Which THREE of the following are parts of the master budget? (Choose three.)

A) Budgeted statement of financial position.
B) Finished goods inventory budget.
C) Cash flow budget.
D) Administration overhead budget.
E) Budgeted statement of profit or loss.
F) Sales budget.

3. A company uses standard absorption costing. Budgeted and actual data for the latest period are as follows.

What was the production overhead absorption rate per unit?

A) $29
B) $27
C) $35
D) $21

4. Assume that a unit of output is the cost object. Which of the following statements is valid?

A) Rent paid for a factory in which several different products are produced is an example of an indirect expense.
B) Royalties paid on per unit basis are an example of an indirect expense.
C) The salaries of supervisors who oversee the manufacture of several different products are an example of a direct labour cost.
D) Materials consumed in the maintenance of machinery used to manufacture several different products are an example of a direct material cost.

5. The International Federation of Accountants (IFAC) stated that it was important that "accountants in business" should understand what the drivers of stakeholder value are. Which of the following statements is valid?

A) Only an organisation's shareholders can be considered to be its stakeholders.
B) Anyone with an interest in an organisation can be considered to be one of its stakeholders.
C) Stakeholders must be external to the organisation.
D) Only an organisation's shareholders and employees can be considered to be its stakeholders.

Solutions: